The Bitcoin network recently reached a significant milestone by mining its 800,000th block, leaving just 40,000 blocks remaining until the next mining reward halving.
The 800,000th block contained 3,721 transactions, occupying 1.64 megabytes of data. Concurrently, the price of Bitcoin was trading at $29,815, a slight decrease from $29,162, as reported by market researcher Dylan LeClair on Twitter.
The achievement garnered considerable attention on social media, with Bitcoin enthusiasts and industry experts touting it as a testament to the network’s security and resilience.
In the context of blockchain technology, the term “block height” refers to a block’s position on the blockchain concerning the number of blocks that came before it, dating back to the network’s founding block, known as the genesis block.
Each block comprises bundled transactions and data, forming a chronological order that allows users to track the sequence of recorded transactions.
Block height also plays a crucial role in ensuring the immutability of the Bitcoin blockchain. As more blocks are added, the computational power required for a malicious actor to tamper with previous blocks significantly increases.
This helps prevent 50% attacks, where an attacker gains enough computing power to monopolize block generation, enabling them to reverse transactions and disrupt the network.
Moreover, block height affects the mining difficulty of the Bitcoin network.
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The mining difficulty is adjusted regularly based on the total computational power of the network and the time it takes to mine a specific number of previous blocks.
Since the network generates a new block approximately every 10 minutes, any changes in hashing power result in automatic adjustments to maintain equilibrium.
Furthermore, block height determines the rewards received by miners for adding a new block to the network. Bitcoin’s design includes a block-halving event roughly every four years or every 210,000 blocks.
Initially, the block reward was 50 BTC in 2009, which halved to 25 BTC in 2012, 12.5 BTC in 2016, and presently stands at 6.25 BTC since 2020.
The next halving event is anticipated to occur in April 2024, resulting in a reduced block reward of 3.125 BTC.
Past halving events have historically coincided with significant price rallies for Bitcoin and the broader cryptocurrency market.
As the countdown to the next halving event begins, macroeconomic factors have influenced the price of BTC, particularly following its all-time high of $69,000 in 2021.
Analysts and commentators have interpreted recent Bitcoin exchange-traded fund filings by global asset managers BlackRock and Fidelity as a sign of renewed institutional interest in Bitcoin.
These developments continue to shape the cryptocurrency’s trajectory as it moves closer to another crucial halving event.
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Bitcoin (BTC) has been struggling to break above the resistance at $31,000, but it has managed to maintain support at $29,500.
This suggests that the price needs a catalyst to break out of its current range.
The upcoming Federal Reserve meeting on July 25 and 26 is an important event to monitor.
There’s a high probability of a 25 basis point rate hike, which may not cause an immediate market reaction as it seems to have been priced in.
However, any unexpected move by the Fed could push the price of Bitcoin out of its range.
Analysts expect the range to break soon, but they are divided on the direction of the breakout.
A downside break could lead to a significant decline, with some projecting a fall to around $20,000.
On the positive side, if Bitcoin’s price moves higher, certain altcoins could attract buyers.
Now, let’s take a look at the charts of the top five cryptocurrencies that may turn positive in the coming days.
For Bitcoin, it remains below the 20-day exponential moving average ($30,036) but has support at the 50-day simple moving average ($28,979).
This indicates that the bulls are not giving up, and their repeated efforts to prevent a decline might attract buyers.
If the price breaks above the 20-day EMA, it could rally towards the resistance at $31,000 and even open the path for a potential rally to $40,000.
Conversely, a drop below the 50-day SMA may suggest a bearish comeback, leading to a slump towards the support at $24,800.
Next, Chainlink (LINK) has been trading in a range between $5.50 and $9.50, with bulls managing to keep the price within this range.
The current upward momentum, with both moving averages turning up and the RSI in positive territory, indicates that bulls are in control.
If buyers push the price above $8.80, the pair may soar towards $9.50. On the downside, a break below $7.05 might lead to a drop towards $6.50.
Filecoin (FIL) is attempting to form an inverse head and shoulders pattern, which will complete on a break and close above the neckline.
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The moving averages sloping upwards and the RSI in positive territory indicate a potential upside.
If the price breaks above the neckline, the pair could rally to $6.50 and eventually target $7.30.
A sharp downturn from the neckline and a break below the 50-day SMA could indicate the bulls losing control, leading to a drop to $3.29.
Synthetix (SNX) is attempting to break out from a basing pattern, but it’s facing resistance between $3.40 and $3.56. The fact that buyers prevent dips below the 20-day EMA shows positive sentiment.
If they clear the overhead zone, the pair might rally to the next resistance at $4.50.
On the other hand, a dip below the 20-day EMA might drag the price to $2.19.
Finally, THETA (THETA) is facing selling pressure near the 38.2% Fibonacci retracement level of $0.83.
However, the bulls have managed to prevent the price from sustaining below the 20-day EMA, indicating positive sentiment.
Breaking and closing above $0.83 could lead to further gains towards $0.91 and $0.99. Conversely, a plunge below the moving averages might bring the price down to $0.66.
In conclusion, the cryptocurrency market is closely watching Bitcoin’s price movement and the outcome of the Federal Reserve’s meeting for potential catalysts.
Analysts remain uncertain about the direction of the breakout, but altcoins like Chainlink, Filecoin, Synthetix, and THETA show both positive and negative scenarios depending on specific chart levels.
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Bitcoin (BTC) faced downward pressure over the weekend, and its ticker dipped to $29,906 as traders anticipated the July 23 candle close.
With BTC/USD acting below $30,000, this level became intraday resistance, and concerns grew among traders that further losses might be in store.
Prominent trader Crypto Tony analyzed the 3-day chart and observed a double top rejection, signaling potential further declines. He highlighted two critical psychological levels to watch, $25,000 and $20,000, in case of a drop.
Another trader, Nebraskan Gooner, shared the sentiment that downward price action was likely, as BTC/USD had fallen below the narrow range that had been in play for the past month.
However, traders were divided on whether Bitcoin would break out or break down to revisit previous price levels from earlier in the year.
Toni Ghinea, a popular trader and analyst, foresaw a decisive move for Bitcoin in the coming week. He identified $31,000-$32,000 as resistance and $29,000 as support, urging caution not to get carried away if there’s a break above the range high.
In the event of a significant drop, he pointed out the key area to watch at $27,000-$28,000, and if it holds, buyers should be prepared for a potential pullback. However, a further breakdown to the $19,000-$23,000 range remained a possibility.
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Market analysis earlier noted the importance of various trend lines that acted as support and resistance for Bitcoin.
The following week was expected to be crucial for Bitcoin’s price action as markets reacted to macroeconomic policy cues.
The US Federal Reserve’s Federal Open Market Committee (FOMC) was scheduled to meet to decide on interest rates before the Bitcoin monthly close.
It was widely predicted that interest rates would return to a hike after a previous pause, with odds standing at 99.2% as of July 23, according to CME Group’s FedWatch Tool.
Overall, uncertainty loomed over the Bitcoin market, and traders were closely monitoring key levels and macroeconomic developments to gauge the cryptocurrency’s future direction.
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Britain’s Financial Services Minister, Andrew Griffith, has rejected the idea of treating cryptoassets as a form of gambling.
He argues that such a classification would not only put Britain at odds with global and EU regulators but also fail to address the risks posed by the crypto sector.
In a report released in May, Parliament’s Treasury Select Committee suggested that cryptocurrencies like bitcoin and ether should be regulated as gambling due to the significant risks they pose to consumers.
However, Griffith firmly disagrees with this recommendation, asserting that it could lead consumers to mistakenly believe that investing in crypto is safer than it actually is.
UK regulators have been warning investors about the potential to lose all their money in the volatile crypto market.
The UK government has ambitious plans to establish itself as a global hub for cryptocurrencies and blockchain technology.
Nevertheless, Griffith maintains that regulating cryptoassets as gambling would not be an appropriate solution to ensure the safety and stability of the sector.
Moreover, such an approach would contradict internationally agreed-upon recommendations from standard-setting bodies like the International Organization of Securities Commissions (IOSCO) and the G20 Financial Stability Board (FSB).
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Both organizations have been actively working on establishing standards for the crypto sector, with IOSCO having proposed the world’s first set of rules for cryptocurrencies in May.
Griffith emphasizes that adopting a gambling regulation model would also risk creating confusion and overlapping mandates between financial regulators and the Gambling Commission.
This misalignment could hinder the growth and development of the crypto industry in the UK.
The European Union has already approved a comprehensive set of rules for trading cryptoassets, scheduled to take effect in mid-2024.
However, buying or selling cryptocurrencies is not currently classified as gambling under the UK’s Gambling Act.
The UK’s gambling watchdog previously investigated a fantasy sports company called Sorare, which uses cryptocurrency for buying and selling non-fungible tokens (NFTs) representing sports stars.
The investigation aimed to determine whether the game amounted to gambling.
Looking ahead, Britain is working on regulations for stablecoins, a type of cryptocurrency backed by underlying assets to maintain a stable value.
These regulations will differentiate stablecoins from the more volatile “unbacked” cryptocurrencies like bitcoin and ether.
In conclusion, the debate over how to regulate cryptoassets continues in the UK, with the government aiming to strike a balance between fostering innovation in the sector and protecting consumers from potential risks.
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On July 20, a British court granted an appeal to Craig Wright, allowing him the opportunity to argue that the Bitcoin file format deserves copyright protection. Since 2016, Wright has asserted that he is the original creator of Bitcoin, using the pseudonym Satoshi Nakamoto.
In his legal action, Wright filed a lawsuit against 13 Bitcoin Core developers and several companies, including Blockstream, Coinbase, and Block, alleging that they infringed on his copyright to the Bitcoin white paper, the file format, and database rights associated with the Bitcoin blockchain.
This recent court decision comes as a reversal of a previous ruling from February, which deemed Wright’s arguments insufficient to demonstrate the initial recording, or fixation, of the Bitcoin file format, a crucial concept in copyright law.
Wright’s tweet on July 20 emphasized the importance of protecting intellectual property to support creators and innovators, encouraging the generation of new ideas and creative works, although he didn’t explicitly mention the court’s decision.
The legal representation for the developers, the Bitcoin Legal Defense Fund (BLDF), countered Wright’s claims by arguing that he has failed to provide any evidence supporting his assertion of being Satoshi Nakamoto.
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BLDF stated that Wright must first prove his identity as Nakamoto before the court can proceed with the primary claims of the lawsuit. The trial is anticipated to take place in early 2024.
One significant point of contention in the case is that the Bitcoin code is open-source and distributed freely under the Massachusetts Institute of Technology license.
This means that users have the right to reuse the code for any purpose, including in proprietary software.
However, Wright argues that the Bitcoin Core developers act as a centralized entity, referred to as the “Bitcoin Partnership,” which allegedly controls the Bitcoin network.
BLDF expressed concern over the court’s decision to hear Wright’s arguments, as they believe it sets a dangerous precedent not only for the crypto community but for the entire world.
Allowing developers to be sued for purportedly violating the file format of open-source software claimed by someone else could have far-reaching implications for the software development industry.
As the legal battle continues, the outcome of this case could have significant ramifications for the protection of intellectual property rights in the realm of open-source software and the broader cryptocurrency community.
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Nigerian social payments app Bundle has recently announced the discontinuation of its crypto exchange services.
The decision, communicated through a statement on July 20 on the company’s blog, comes as part of a strategic restructuring effort to shift focus towards their payment solution called Cashlink.
According to the statement, the move was prompted by the observed growth of the Web3 and blockchain community.
Bundle’s shareholders deemed it necessary to pivot the business to meet the evolving needs of the ecosystem, concentrating on payment solutions that align better with the current trends.
With this change, users will no longer be able to register on Bundle’s platform, deposit assets into their Bundle wallet, or execute asset swaps within the wallet (except for Tether (USDT)).
Furthermore, users won’t be able to withdraw their assets with Cashlink unless they have Nigerian naira or other fiat currencies stored within their Bundle wallet.
The company has set a deadline for users to withdraw their assets from the app. Users are advised to complete this process on or before September 12, 2023.
To facilitate a smooth withdrawal, Bundle has outlined specific steps for users in Nigeria, Ghana, Kenya, and other francophone-speaking countries.
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For users in these locations, the withdrawal process involves transferring their funds from Bundle to any preferred exchange.
Nigerian users, in particular, have the option to withdraw their naira using Cashlink or conduct bank transfers through P2P express. If their balance is less than $10, an easily accessible link is provided to initiate the withdrawal process.
The closure of Bundle’s crypto exchange arm follows the footsteps of another Nigerian crypto payment startup, LazerPay, which ceased its operations in April and made its intellectual property available for sale.
In conclusion, Bundle’s decision to shut down its crypto exchange services is driven by the desire to adapt to the rapidly evolving crypto and blockchain landscape.
By focusing on their payment solution, Cashlink, the company aims to cater better to the needs of the Web3 community.
Users are urged to withdraw their assets before the designated deadline, and specific guidelines have been provided for a seamless withdrawal process in various countries.
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A plea agreement has been reached between the husband and wife implicated in the laundering of billions of dollars worth of Bitcoin linked to the 2016 Bitfinex hack and U.S. authorities.
Ilya Lichtenstein and Heather Morgan are set to appear for an arraignment and hearing on August 3, following records filed with the U.S. District Court for the District of Columbia on July 21.
This agreement comes as they faced charges of money laundering conspiracy and conspiracy to defraud the U.S., and as part of the deal, they will be forfeiting digital assets associated with the case.
The criminal activities stem from the notorious hack of the cryptocurrency exchange Bitfinex in August 2016, during which approximately 119,754 Bitcoin (BTC), valued at $29,841 at that time, were stolen.
Subsequently, Lichtenstein and Morgan allegedly engaged in a series of intricate transactions across multiple accounts and platforms, laundering over 94,643 BTC of the stolen funds.
In February 2022, the authorities arrested the couple in New York and seized the BTC.
At the time of the hack, the confiscated Bitcoin was worth roughly $54 million, but by the time of the current publication, the value had surged to $3.6 billion.
The arrests and the subsequent seizure of laundered Bitcoin marked the most significant financial seizure ever carried out by the U.S. Department of Justice.
Though some small amounts of BTC connected to the hack have been occasionally traced and moved, only a limited portion has been returned to Bitfinex by the authorities to aid in the restoration of victims’ funds.
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This plea agreement may bring some semblance of closure to the complex case, allowing the legal process to move forward while addressing the consequences of the vast cryptocurrency theft and its impact on the victims.
However, it also highlights the need for continued vigilance and security measures within the cryptocurrency space to safeguard against such high-profile hacks and money laundering schemes.
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In 2023, Bitcoin miners have been facing an uphill battle as the cryptocurrency market experiences volatility and uncertainty.
The past year has seen a surge in BTC being sent to centralized exchanges by miners to cover their operational costs.
The Bitcoin mining industry had a momentous year, earning a staggering $184 million from transaction fees in the second quarter of 2023.
This increase was attributed to the rebound in BTC’s price and the growing excitement surrounding BRC-20 tokens.
However, despite this revenue boost, prominent mining firms’ stocks outperformed Bitcoin’s market value by a significant margin, with their market capitalization rising by 257% since the start of the year.
To cope with the prolonged bear market, miners have been forced to sell mined BTC to cover expenses. June 2023 witnessed a record $128 million worth of Bitcoin sent to exchanges, leading experts to highlight miners’ tendency to cash out, cover costs, and secure profits.
Reports from Bitfinex indicate that mining companies are engaging in derisking strategies by offloading BTC to exchanges.
These strategies involve hedging activities in the derivatives market, conducting over-the-counter orders, or transferring funds through exchanges for various purposes.
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Cointelegraph reached out to prominent mining companies for insights into the current mining climate. Hut8’s CEO, Jaime Leverton, revealed that the company had been pursuing a merger with USBTC, which hindered its capital-raising efforts through at-the-market offerings.
To meet its operating costs, Hut8 sold a portion of its Bitcoin holdings and newly produced BTC.
Nevertheless, Leverton assured that the company still held more than 9,100 BTC (equivalent to $271 million) and remained bullish on Bitcoin, maintaining one of the largest self-mined Bitcoin reserves among publicly traded companies.
Foundry’s senior manager, Charles Chong, pointed out that current market conditions differed from previous bull markets, where miners could hold onto their BTC due to abundant external capital and higher production margins.
Now, with scarce external funding and reduced margins of 15-30%, miners are compelled to liquidate their Bitcoin to sustain operations.
Chong also noted that comparing the current market to the bear markets following the 2017 and 2021 peaks was challenging.
Bitcoin mining operates in cycles, with miners overinvesting in ASIC mining equipment during favorable times.
The recent all-time high in Bitcoin mining difficulty indicated a robust network, with new, more efficient mining equipment entering the market, requiring miners to update their fleets to remain profitable.
Despite market challenges, industry participants’ continuous deployment of machines and increasing hashrates signals their optimism regarding Bitcoin’s future price appreciation.
Difficulty increases, driven by rising hashrates, reflect miners’ confidence in potential upside for BTC’s price.
Unfortunately, the tough market conditions led to the closure of some major mining firms, including Core Scientific, which filed for chapter 11 bankruptcy in June 2023.
However, the company managed to raise substantial capital to initiate a reorganization plan slated for September 2023.
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Bitcoin (BTC) is showing signs of an impending burst of volatility, comparable to the significant 40% gains it experienced in January.
On-chain data, as reported in analytics firm Glassnode’s weekly newsletter, The Week On-Chain, points to the tightest Bollinger Bands for BTC since the beginning of 2023.
BTC’s price has remained in a narrow range for a whole month, with $30,000 acting as a pivotal point for sideways movement.
This situation is testing both bullish and bearish traders, leaving them uncertain about the future direction of the market.
Analyst Aksel Kibar observed on July 21 that the prolonged sideways action is often a precursor to strong price movements, although he remains unsure of the direction.
To prepare for the upcoming surge in volatility, he sticks to his well-defined boundaries and awaits the directional move.
Bollinger Bands, a classic volatility indicator, are currently signaling that the days of rangebound BTC price action are limited. These bands use standard deviation around a simple moving average to determine when a shift in trend is likely.
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At present, the upper and lower bands are closer together than at any point during BTC’s upside in 2023, indicating a potentially significant move soon.
The market is experiencing a period of extremely low volatility, with the 20-day Bollinger Bands indicating an extreme squeeze, marking the “quietest BTC market since the lull in early January.”
Such a scenario previously led to a breakout in January, resulting in substantial gains throughout the month.
Glassnode also observed that, despite BTC’s price gains since January, there is little active selling for profit or loss at current levels.
This lack of “realized” activity is a common occurrence after price cycle lows.
Investors seem reluctant to spend their coins on-chain, as evidenced by the relatively small sum of profits and losses locked in by the market, amounting to approximately $290 million per day.
This figure, although significant on a nominal basis, is comparable to the situation in 2019 and October 2020, even though the Bitcoin market cap has approximately doubled since then.
In summary, Bitcoin’s tight Bollinger Bands and the lack of active selling indicate an imminent surge in volatility.
Traders and investors are eagerly anticipating the directional move, as it has the potential to rival the significant gains witnessed in January.
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Robert F. Kennedy Jr. Pledges to Back US Dollar with Bitcoin if Elected President
Democratic presidential candidate Robert F. Kennedy Jr. has unveiled his plan to back the United States dollar with Bitcoin (BTC) if he wins the presidency.
Kennedy made this announcement during a Heal-the-Divide PAC event on July 19, where he emphasized the potential of using “hard currency” like gold, silver, platinum, or Bitcoin to stabilize the American economy.
Kennedy believes that backing the U.S. dollar with tangible assets could strengthen the currency, combat inflation, and foster financial stability, peace, and prosperity in the nation.
He clarified that this process would be implemented gradually, and the level of backing for the dollar would be adjusted based on the success of the plan.
To initiate the strategy, Kennedy proposed a conservative approach, suggesting that initially, only a small portion of issued T-bills, perhaps around 1%, would be backed by hard currency such as gold, silver, platinum, or Bitcoin.
In addition to his backing of Bitcoin, Kennedy also declared his intention to exempt Bitcoin to U.S. dollar conversions from capital gains taxes.
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He believes that this exemption would encourage investment and incentivize businesses to choose the United States as their primary location, rather than crypto-friendly jurisdictions like Singapore or Switzerland.
Kennedy’s recent statements in support of Bitcoin follow his participation in the Bitcoin 2023 conference in Miami on May 19, where he announced that he would accept political campaign donations in Bitcoin.
Surprisingly, investment disclosures on July 9 revealed that Kennedy himself owned up to $250,000 worth of Bitcoin, contradicting his earlier claims of having no exposure to the asset.
Kennedy is not the only presidential candidate making promises related to cryptocurrencies.
On July 14, Republican presidential candidate and Florida Governor Ron DeSantis vowed to ban central bank digital currencies if elected as president, asserting that such currencies would have no place in the United States under his leadership.
As the race for the presidency continues, it remains to be seen how these crypto-based promises and proposals will shape the future of the American economy and financial landscape.
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